A consortium of 24 crypto firms has established the Taiwan Virtual Asset Service Provider (VASP) Association to establish self-regulatory standards for the digital asset industry in Taiwan.
Titan Cheng, the founder and CEO of BitoPro, has been appointed as chair, as per an official announcement on June 13. Winston Hsiao, the chief revenue officer of XREX, will serve as the vice chair.
The organization declared its dedication to advancing equitable and robust regulations that promote the global expansion of blockchain finance.
Taiwan’s VASP Association to Combat Fraud
The association endeavors to combat fraud and other illicit activities within the industry by working with the government, the Ministry of Justice, and law enforcement agencies.
XREX, as a member of the association, declared its intention to contribute technology, industry knowledge, and infrastructure to establish a joint defense platform and develop international transfer regulations consistent with Taiwan’s requirements.
This encompasses the development of currency flow scanning and monitoring technology in accordance with Taiwan’s fraud and money laundering patterns.
The VASP association was established in response to a proposal by Taiwan’s Justice Ministry officials to modify the Anti-Money Laundering (AML) regulations for virtual asset service providers.
Noncompliant entities may be subject to fines of up to $1.5 million or imprisonment for up to two years due to the proposed amendments.
Furthermore, Taiwan’s Financial Supervisory Commission (FSC) declared its intention to implement novel regulations regarding digital assets in September.
Hsiho Huang, a director from the FSC, stated that the association’s establishment would foster more cooperation and consensus within the industry, ensure the industry’s safety, transparency, and stability, and improve consumer rights protection.
Additionally, it will promote compliance, standardization, and healthy development.
Taiwan to Advocate for Cryptocurrency Regulations
Unless they obtain the necessary registration, Taiwan is expected to impose restrictions on offshore cryptocurrency exchanges within its jurisdiction.
The nation’s Financial Supervisory Commission (FSC) created ten guiding principles for VASPs to establish self-regulatory rules in September of last year.
By the end of this month, the guiding principles ought to be publicly available.
Specifically, the guidelines are anticipated to enhance information disclosure, establish review standards for virtual asset listing and delisting, and guarantee the separation and custody of the assets of companies and customers.
The FSC intends to rigorously prohibit foreign crypto firms from soliciting illegal business.
It will require foreign VASPs to register by company law and report their compliance with anti-money laundering regulations to the FSC.
These companies will be prohibited from soliciting business from domestic residents or within Taiwan if they fail to comply with this requirement.